Deck 7: The Economics of Health Care

Question 1

The overall decline in death rates in the United States since 1981 was due to all of the following except

A) a decline in smoking.
B) the decline in the population.
C) the availability of new prescription drugs.
D) new surgical techniques.

Answer 1

B

Question 2

On average, people in low-income countries ________ than people in high-income countries.

A) have a longer life expectancy
B) are subject to a lower infant mortality rate
C) are shorter
D) are exposed to fewer severe diseases

Answer 2

C

Question 3

A typical consumer of health care in the United States

A) pays the full price of his or her health care.
B) pays more than the full price of his or her health care.
C) does not pay any of the price of his or her health care.
D) does not pay the full price of his or her health care.

Answer 3

D

Question 4

In the United States from 1981 to 2011, deaths from all of the following declined substantially except

A) cancer.
B) kidney disease.
C) heart attacks.
D) strokes.

Question 5

On average, people in high-income countries ________ than people in low-income countries.

A) have a shorter life expectancy
B) are subject to a higher infant mortality rate
C) are taller
D) are exposed to more severe diseases

Question 6

Between 1981 and 2011, the overall mortality rate in the United States

A) decreased by more than 25 percent.
B) slowly but steadily increased.
C) remained fairly constant.
D) was similar to the average rate in most low-income countries.

Question 7

Health problems prevent people from working harder, which can lower a country's total income. This indicates that in effect, health problems

A) are a primary cause of price decreases.
B) increase the incentive to work.
C) shift country's production possibilities frontier inward.
D) decrease consumer surplus.

Question 8

In the United States from 1981 to 2011, deaths from diabetes increased largely due to the effects of

A) foreign-produced insulin.
B) stress in the workplace.
C) a larger immigrant population.
D) increasing obesity.

Question 9

In 2013, health care made up ________ of the U.S. economy

A) about 2 percent
B) roughly 8 percent
C) more than one-sixth
D) almost two-thirds

Question 10

In the United States, doctors and hospitals that provide most health care are

A) primarily private firms.
B) primarily employed by the government.
C) split evenly between private firms and employed by the government.
D) 100 percent employed by the government.

Question 11

Over the past 160 years in the United States, life expectancy

A) has remained fairly constant.
B) has slightly declined.
C) has more than doubled.
D) increased up to the 1950s and then declined for the next 60 years.

Question 12

In 2013, infant mortality in the United States was ________ per 1,000 live births.

A) 5.9
B) 45.4
C) 82.7
D) 228.9

Question 13

In the United States from 1981 to 2011, deaths from which of the following increased?

A) cancer
B) kidney disease
C) heart attacks
D) strokes

Question 14

Better health allows people to work harder, which raises a country's total income. This indicates that in effect, better health

A) is a primary cause of price increases.
B) reduces the incentive to work.
C) shifts out a country's production possibilities frontier.
D) increases consumer surplus.

Question 15

In 2014, the average life expectancy at birth in the United Kingdom and other high-income countries was around ________ years.

A) 60
B) 70
C) 80
D) 90

Question 16

Between 1981 and 2011, deaths from kidney disease increased largely due to the effects of

A) increasing obesity.
B) increasing alcohol consumption.
C) increased smoking.
D) increased pollution.

Question 17

In the United States since 1900, life expectancy at birth has ________ and the death rate has ________.

A) increased; increased
B) increased; decreased
C) decreased; increased
D) decreased; decreased

Question 18

Which of the following has not contributed to the overall decline in death rates in the United States since 1981?

A) a decline in smoking
B) the decline in the population
C) the availability of new prescription drugs
D) new surgical techniques

Question 19

In the United States from 1981 to 2011, deaths from ________ increased largely due to the effects of increasing obesity.

A) strokes
B) cancer
C) heart attacks
D) diabetes

Question 20

In 2013, the average height of adult males in the United States was

A) 5' 7."
B) 5' 9."
C) 6' 0."
D) 6' 4."

Question 21

Life expectancy at birth in the United States has more than doubled since 1850.

Question 22

Briefly describe changes in life expectancy, average height, and infant mortality in the United States since 1850.

Question 23

Between 1981 and 2011, deaths from cancer have increased in the United States.

Question 24

Over time, people in the United States and other high-income countries have, on average, become taller, which is an indication that their nutritional status has improved.

Question 25

Explain why the rates of death due to kidney disease and diabetes has slightly increased in the United States since 1981.

Question 26

In the United States in 2012, the percentage of people without any form of health insurance was about

A) 16%.
B) 29%.
C) 64%.
D) 83%.

Question 27

In the United States in 2012, the percentage of firms that employed between 3 and 199 workers and offered health insurance as a fringe benefit to the workers was about

A) 29%.
B) 42%.
C) 61%.
D) 98%.

Question 28

Briefly describe the most important differences between the market for health care and the market for other goods and services.

Question 29

The overall mortality rate in the United States has remained fairly constant for the past 30 years.

Question 30

In the United States in 2012, the percentage of people who received health insurance through a government program was about

A) 10%.
B) 16%.
C) 36%.
D) 64%.

Question 31

Changes in the health of the average person are an important indicator of changes in the standard of living.

Question 32

In the United States in 2012, the percentage of firms that employed more than 200 workers and offered health insurance as a fringe benefit to the workers was about

A) 29%.
B) 42%.
C) 61%.
D) 98%.

Question 33

Changes in the health of the average person are relatively unimportant as an indicator of changes in the standard of living.

Question 34

In the United States in 2012, the percentage of people with private health insurance was about

A) 17%.
B) 29%.
C) 74%.
D) 83%.

Question 35

In the United States in 2012, the percentage of people that directly purchased an individual or family health insurance policy from an insurance company was about

A) 2%.
B) 10%.
C) 17%.
D) 26%.

Question 36

Since 1981, deaths from cardiovascular diseases have decreased in the United States.

Question 37

The overall mortality rate in the United States has declined for the past 30 years.

Question 38

How can improvements in health increase a country's total income?

Question 39

How can changes over time of the average height of the people in a country help to indicate the standard of living in a country?

Question 40

How can increases in a country's total income improve health?

Question 41

In the United States, health care spending per person based on income per person is ________ the average for most other countries.

A) slightly lower than
B) significantly higher than
C) significantly lower than
D) comparable to

Question 42

The health care system in Canada is referred to as ________, and is a system in which the government provides national health insurance to all Canadian residents.

A) an out-of-pocket system
B) a single-payer health care system
C) a universal health insurance system
D) socialized medicine

Question 43

Of the following high-income countries, which has the lowest number of MRI units per 1 million population?

A) Canada
B) Japan
C) the United Kingdom
D) the United States

Question 44

In the United States in 2012, of those companies employing more than 200 workers that offer health care to those workers, about ________ percent of employees accept the coverage.

A) 10
B) 36
C) 62
D) 98

Question 45

Typically, the higher the level of income per person in a country, the higher the level of spending per person on health care. This relationship between income and spending indicates that health care is

A) a normal good.
B) an inferior good.
C) a luxury.
D) a necessity.

Question 46

Health insurance plans which typically reimburse doctors mainly by paying a flat fee per patient are known as

A) fee-for-service plans.
B) preferred provider organizations.
C) single-health-payer systems.
D) health maintenance organizations.

Question 47

Of the following high-income countries, which has the lowest mortality ratio for cancer?

A) Canada
B) Japan
C) the United Kingdom
D) the United States

Question 48

Of the following high-income countries, which has the highest infant mortality rate?

A) Canada
B) Japan
C) the United Kingdom
D) the United States

Question 49

In the United States, private health insurance companies

A) are all for-profit firms.
B) are all not-for-profit firms.
C) can be either for-profit or not-for-profit firms.
D) are all government-run firms.

Question 50

In the United States in 2012, about two-thirds of those who were not covered by health insurance

A) are single and unemployed.
B) live in families in which at least one member has a job.
C) live in families in which all members are unemployed.
D) are retired from the workforce.

Question 51

Most doctors and hospitals operate as private businesses in all of the following countries except

A) Canada.
B) Japan.
C) the United Kingdom.
D) the United States.

Question 52

The health care system in the United Kingdom is referred to as ________, under which the government owns most of the hospitals and employs most of the doctors.

A) an out-of-pocket system
B) a single-payer health care system
C) a universal health insurance system
D) socialized medicine

Question 53

Of the following high-income countries, which has the highest number of CT scanners per 1 million population?

A) Canada
B) Japan
C) the United Kingdom
D) the United States

Question 54

Health insurance typically pays for most preventive care procedures in all of the following countries except

A) Canada.
B) Japan.
C) the United Kingdom.
D) the United States.

Question 55

A contract under which a buyer agrees to make payments in exchange for the provider agreeing to pay some or all of the buyer's medical bills is referred to as

A) a fee-for-service plan.
B) the Affordable Care Act.
C) a deductible.
D) health insurance.

Question 56

Of the following high-income countries, which has the lowest life expectancy at birth?

A) Canada
B) Japan
C) the United Kingdom
D) the United States

Question 57

The health care system in Japan is referred to as ________, under which every resident of Japan is required to enroll in either a private or the government-provided health insurance program.

A) an out-of-pocket system
B) a single-payer health care system
C) a universal health insurance system
D) socialized medicine

Question 58

The largest government-run health care system in the world, with 1.7 million employees, is in

A) Canada.
B) Japan.
C) the United Kingdom.
D) the United States.

Question 59

In the United States in 2012, the percentage of people without some form of private health insurance was about

A) 17%.
B) 29%.
C) 36%.
D) 83%.

Question 60

In which of the following countries are substantial co-payments typically required as a part of the health care system?

A) Canada and the United States
B) Japan and Canada.
C) the United States and Japan
D) the United States and the United Kingdom

Question 61

Typically, the ________ in a country, the higher the level of spending per person on health care.

A) higher the level of income per person
B) larger the population
C) higher the level of income taxes
D) lower the median age of the population

Question 62

The largest government-run health care system in the world, with 1.7 million employees, is the National Health Service (NHS) in the United Kingdom. The NHS receives its funding primarily from

A) tariffs.
B) the World Health Organization.
C) income taxes.
D) private businesses.

Question 63

In which of the following countries does health insurance not pay for most preventive care procedures?

A) Canada
B) Japan
C) the United Kingdom
D) the United States

Question 64

In ________, health care spending per person based on income per person is significantly higher than the average for most other countries.

A) Austria
B) Canada
C) Norway
D) the United States

Question 65

The health care system in ________ is referred to as a universal health insurance system, under which every resident is required to enroll in either a private or the government-provided health insurance program.

A) Canada
B) Japan
C) the United Kingdom
D) the United States

Question 66

Substantial co-payments are typically not required as a part of the health care system in

A) Canada and the United Kingdom.
B) Japan and Canada.
C) the United States and Japan.
D) Japan and the United Kingdom.

Question 67

Health insurance plans which typically reimburse doctors and hospitals with payment for each service they provide are known as

A) fee-for-service plans.
B) preferred provider organizations.
C) single-health-payer systems.
D) health maintenance organizations.

Question 68

Of the following high-income countries, which has the lowest infant mortality rate?

A) Canada
B) Japan
C) the United Kingdom
D) the United States

Question 69

In the United States in 2012, the percentage of people with some form of health insurance was about

A) 17%.
B) 29%.
C) 54%.
D) 84%.

Question 70

In the United States in 2012, a majority of people received health care through

A) Medicare.
B) Medicaid.
C) their employers.
D) individually purchased insurance policies.

Question 71

In 2011, ________ of the uninsured were younger than age 34.

A) 10%
B) 27%
C) 54%
D) 83%

Question 72

The health care system in ________ is referred to as socialized medicine, under which the government owns most of the hospitals and employs most of the doctors.

A) Canada
B) Japan
C) the United Kingdom
D) the United States

Question 73

In the United States in 2012, the percentage of firms that employed between 3 and 199 workers and did not offer health insurance as a fringe benefit to the workers was about

A) 2%.
B) 39%.
C) 61%.
D) 98%.

Question 74

In the United States in 2012, the percentage of firms that employed more than 200 workers and did not offer health insurance as a fringe benefit to the workers was about

A) 2%.
B) 29%.
C) 44%.
D) 98%.

Question 75

The health care system in ________ is referred to as a single-payer health care system, and is a system in which the government provides national health insurance to all residents.

A) Canada
B) Japan
C) the United Kingdom
D) the United States

Question 76

Health insurance plans which typically reimburse doctors mainly by paying ________ are known as health maintenance organizations.

A) a fee for each individual service provided
B) a fee for each individual office visit
C) an escalating fee based on the number of patients being treated
D) a flat fee per patient

Question 77

In the United States in 2012, of the firms that employed more than 200 workers that offer health insurance to workers, about ________ of employees did not accept the coverage.

A) 2%.
B) 38%.
C) 62%.
D) 98%.

Question 78

Most doctors are employed by the government and most hospitals are owned by the government in

A) Canada.
B) Japan.
C) the United Kingdom.
D) the United States.

Question 79

Typically, the lower the level of income per person in a country, the lower the level of spending per person on health care. This relationship between income and spending indicates that health care is

A) a normal good.
B) an inferior good.
C) a luxury.
D) a necessity.

Question 80

Of the following high-income countries, which has the highest life expectancy at birth?

A) Canada
B) Japan
C) the United Kingdom
D) the United States